Phu Hao Shipping Update: Impact of Middle East Conflict on Global Supply Chains

Dear Valued Customers,

Due to the complex developments surrounding the U.S.–Iran conflict in the Middle East, the global supply chain is currently facing significant challenges regarding operational costs and transit times. In light of this situation, Phu Hao Company would like to formally notify our valued customers of the following critical changes:

SHIPPING STATUS IN KEY MARKETS

Geopolitical tensions in the Middle East have forced maritime and air freight carriers to adjust their routes to ensure operational safety, significantly affecting international shipping.

The conflict in the Middle East is intensifying

Europe, shipping routes passing through or near Iran are experiencing substantial delays. Last-minute schedule changes made by shipping lines have led to congestion at several transshipment ports, affecting delivery timelines compared to the original plans.

South Korea, a decline in oil production, along with extreme fuel price volatility, has increased operational costs. Fuel surcharges are being adjusted frequently, putting direct pressure on freight rates recently.

ADJUSTMENTS TO COSTS AND DELIVERY TIMES

Due to factors beyond our control, we are making adjustments to shipping costs and delivery times:

Shipping Costs: Freight rates for future shipments may increase based on updates from shipping lines, which will depend on market fluctuations within the international transport sector.

Delivery Times: Actual delivery times may be longer than originally planned due to international shipping schedules and carrier adjustments.

The impact of the Middle East conflict on international shipping operations

To help minimize operational risks, we kindly ask that you review and adjust your import plans according to the current shipping environment.

PHU HAO’S COMMITMENT

Phu Hao Company is actively monitoring the international transport market and is coordinating with shipping lines and logistics partners to ensure stable operations within our control. We will promptly communicate any updates on vessel schedules, delivery times, and shipping costs to you.

We greatly appreciate your understanding and cooperation regarding the uncontrollable fluctuations in the global supply chain. Phu Hao Company is committed to maintaining high service quality and ensuring the best possible delivery performance.

Sincerely.